Advice on choosing bank for estate account since I am non resident in UK

Almazuelas

I am co-executor together with my niece of my late aunt’s will and, following several cash bequests to relatives, I am also the beneficiary of the residual estate.  We have received Grant of Probate and are looking at the best place to transfer the money from my aunt’s bank and building society accounts (NatWest and Nationwide).  I understand an “Executor’s Account” is not a legal necessity but obviously want to open a suitable account to keep a precise record of all transactions. There is also a  property that will be sold as soon as possible.  The complication is that I live in Spain and with the Coronavirus developments it’s looking unlikely I will be able to travel to UK for a little while, to physically go to a branch and open an account so I’m wondering whether an online account may be an acceptable alternative.  There is also the question of me being a UK account holder when I am resident abroad.  I am fully aware that my responsibility as an executor is to all beneficiaries and that I mustn’t do anything more for my own benefit but, without wishing to affect the other beneficiaries, should I research bank accounts which might facilitate transfer of the residual funds to Spain when the time comes? I need to find somewhere to put the money soon because the care home bill also needs to be paid.  Grateful for any suggestions or advice.  

JGB1955

Assuming the niece lives in the UK, can't she open an account?

xylophone

  I am assuming that your niece does live in the UK. Did you have any particular reason for not  renouncing or having power reserved? It could have made life easier?

As things stand, I am wondering whether you might be best advised to grant your niece Power of Attorney so that she can deal with all matters relating to the estate?
https://www.rocketlawyer.com/gb/en/quick-guides/overseas-powers-of-attorney
With regard to paying the care home fees, I take it that you mean that this is a bill outstanding in respect of your late aunt's fees?
I am wondering whether Natwest would agree to make a direct payment to the care home ( similar to authorising funeral expenses from the bank account of the deceased)?

Almazuelas

Yes, my niece does live in UK but has actually been little help with any paperwork so far due to having a young family and limited time available (a situation we hadn't foreseen when the will was drawn up!). I had no reason to renounce or have power reserved and up till now have managed perfectly well to handle everything whilst on trips to UK and online, including achieving Grant of Probate in less than a month.  It is only because of the coronavirus travel situation that I can't continue to handle everything single-handedly.  With the exception of the care home fees I could leave everything till I am able to visit the UK again - thanks for the suggestion, I will ask NatWest whether that would be possible, although they did take an awfully long time to settle the funeral expenses!  I'm reluctant to leave everything to my niece, particularly when it comes to distributing the bequests, but I will ask her to go into NatWest and Nationwide and maybe seek advice on whether an account can be opened without me being there.

xylophone

It is not an absolute legal requirement to have an executors' account as such. 
No doubt your niece could open an account in her own name and it would appear (somewhat alarmingly) see https://forums.moneysavingexpert.com/discussion/6105433/joint-executor-run-away-with-estate-funds-what-can-i-do#latest
could even give instructions off her own bat for the monies to be transferred into that account!
The problem could arise with  her opening a joint account with a non UK resident - banks seem to be becoming ever more reluctant to do this. Add to this the problems that some UK banks appear to have in setting up exor accounts and you have a recipe for stress and frustration.

There is then the selling of the property to consider - you will no doubt be aware that this is heavy on admin, that you and your niece are likely to have to deal with a UK solicitor and in these days of identity checks etc, could find yourselves wading through treacle.

Have you looked into whether there are any Spanish implications concerning tax on bequests from foreign wills?

xylophone

Another thought, if Natwest prove uncooperative, could you pay the care home fees yourself and claim back from the estate?

Savvy_Sue

Unless you already have a UK account, I'd say the chances of being able to open a new UK account are slim to zero, possibly even if you were here on a visit. If you DO already have a UK account then being able to open another with the same bank becomes much more likely, and adding another person to it should 'only' require that person to take ID into the bank. 

Even instructing an estate agent and appointing a solicitor to deal with the conveyancing may be 'interesting', although there are at least companies used to offering a remote service. However before taking instructions they will need to run identity checks, and I don't know how they manage this. 

You might find that you need the help of a solicitor in Spain who also does UK law - I'm sure there are plenty of them. 

Almazuelas

Goodness this is all getting very complicated....  And it had been so simple up till now.

I don't have a UK bank account as I've lived abroad for over 30 years however I am a named person on my father's current account at Lloyds - it's not a joint account but I have a debit card in my own name on that account (I guess it's because I hold an LPA for him) - not sure whether that may count and Lloyds would consider allowing me to open an account.  I will try and ask them.

I've been in touch with a solicitor as well as the estate agent who did the probate valuation and neither seems to have a problem with "remote" dealings so fingers crossed about that at least.

Unfortunately I have looked at the implications of Spanish inheritance tax on bequests from foreign wills and it's not good news at all, particularly as this is an inheritance from an aunt not a parent - it varies depending on location but in our autonomous community (Valencia) the rates are high (up to 40%) and also need to be paid within 6 months of the death, although we know we can apply for an extension.  We are consulting a Spanish inheritance tax lawyer but are resigned to the fact that a considerable amount will need to be paid.

Savvy_Sue

Being 'known' to Lloyds would increase your chance of getting an account from 'slim to none' to 'fair to middling' IMO, so hope you make some progress there. The point is that you are - in some sense - KNOWN to them. 

And also good news about the solicitor and estate agent. 

sorry to hear about the Spanish inheritance tax. Do they have any useful measures for mitigation? I know it still reduces what you receive, but I've always felt that if it's a choice between paying IHT to the government and giving a gift to a charity, the latter wins!

Almazuelas

Yes, I agree, Savvy_Sue, we will look into mitigation possibilities.  Thanks.  With regards to Lloyds, no luck as yet but I will keep trying.  Unfortunately they don't have a live chat and I haven't found a suitable email address to write to yet and it's not an easy scenario to explain over the phone.

xylophone

Lloyds Bank used to have  strong Spanish connections but entered into a sale arrangement with Sabadell some while back.
You could try telephoning the Bereavement team at Lloyds  but of course the team will be more attuned to the situation where the deceased held accounts with the bank.
https://www.lloydsbank.com/help-guidance/customer-support/bereavement.html